Unicorn Investment Bank, the Bahrain-based financial services group, announced the successful close of a $450 million 5-year Sukuk on behalf of Dar Al-Arkan Real Estate Development Company, a leading residential real estate developer in Saudi Arabia.
The Sukuk, which offers a yield of 11 per cent, will be used to finance the company's current and future development projects.
The Sukuk marks the first international issue out of the GCC region in 2010 and was jointly lead managed by Unicorn, Deutsche Bank Securities and Goldman Sachs International, who were also the joint bookrunners. Unicorn was the Sharia advisor to the transaction.
The Sukuk attracted significant interest from investors in the GCC, Europe, Asia and the United States, with Dar Al-Arkan opting to close the issue at $450 million. As the first 144a issue by a company in Saudi Arabia, the landmark Sukuk made it possible for US investors to directly participate in a Saudi Arabia issue for the first time.
